What is the difference between a land contract and a lease to own?

Question

Is one better for the seller than another?

Answer 1

Hmmm... The "expert" above has confused "lease to own" with "lease option" it seems. And "Land Contract" with "Owner Carry".

Land Contract and Lease to Own are synonymous. They are two terms for the same thing. The seller of the property leases the property to the tenant/buyer for a period of years and agrees to transfer full title to the tenant/buyer if all lease payments are made on time. If the tenant/buyer misses a payment or is more than a specified number of days late on any lease payment, the agreement reverts to a standard lease and the right to full title is lost. Any down payment made would also be lost in case of default.

Answer 2

*disclaimer im not an attorney*

A land contract is where you are the bank. You give them a mortgage and collect payments. They get to own the property. You actually transfer the property in a trust deed. The seller would have to follow all the procedures of foreclousure to get the owners out for non playment.

A lease option gives the RENTERS a right to buy the property in the future and what they paid you going toward that lease. Its a lease or contract saying I will sell you this property if you follow all these conditions.

The land contract you are the bank, lease you are a landlord. Much easier to kick somebody out of your house, then out of their house.

To make it simple you transfer title of your home to somebody else and put a lien agaisnt it... Or you say you can rent it and I can kick you out in 30 days if you dont follow your lease.

I dont really see a pro or con between the two for the seller, unless you have to take it back. Then the land contract will be much harder.

Answer 3

A land contract is an contract to purchase the homestead. in many cases you will desire a down charge, as in case you're identifying to purchase. RTO is you're renting the homestead, which contain your option to purchase it. a number of your hire would be utilized to the value of the homestead must you settle directly to purchase it.